Ahead of Small Business Saturday, the Biden-Harris Administration announced several new initiatives on ꧙Friday, November 29, to support small businesses by expanding access to federal 🌊lending and contracting opportunities. These actions are part of ongoing efforts to drive economic growth and equity by fostering small business development in underserved communities.

Main Provisions

1. Increasing Loan Limits for Underserved Businesses:
   The Small Business Administration (SBA) is raising the cap on 7(a) Small Loans for Community Advantage Small Business Lending Companies (CA SBLCs) from $350,000 to $500,000. These mission-driven lenders often serve businesses owned by women, people of color, veterans, and those in low-income or rural areas.
2. Strengthening Federal Contracting Opportunities:
   The Office of Management and Budget (OMB) is issuing new procurement guidance to improve forecasting of federal contract opportunities. This guidance aims to help small businesses prepare competitive proposals and secure contracts.
3. Promoting Small Disadvantaged Businesses (SDBs):
   The OMB will increase the federal supplier base by growing the share of small disadvantaged businesses owned by minorities and women, adding resilience to supply chains.

What it Means for Small Business

Small businesses thrive or wither depending on access to 澳洲幸运5开奖号码历史查询:working capital, most often in the form of 澳洲幸运5开奖号码历史查询:SBA loans. Small business lenders approved to originate and service 澳洲幸运5开奖号码历史查询:Standard 7a SBA loans can now lend up to $500,000 to small business borrowers, up from $350,000. This increased lending cap can make a real difference to small businesses in acquiring needed 🥂funding for office, equipment, an🔥d employee salaries, considering the rise in costs due to inflation.

Many small b✨usinesses, especially those with minority o꧂r female ownership, compete for federal contracts. The new initiatives will help expand and make these contract opportunities more transparent and accessible.

Since January 2021, over 20 million new applications have been filed—the highest in U.S. history. This growth has been especially significant among historically underrepresented groups, with Black business ownership doubling and ownership among Hispanic and Asian Americans reaching 30-year highs.

Choosing an SBA Lender

Small busine🎀ss owners should consider SBA-preferred lenders to gain access to those with more authority to process, close, and service loans more efficiently than non-preferred lenders. Small business borrowers can use the SBA's to narrow down the best options for SBA-preferred lenders.

Alternatively, small businesses have 澳洲幸运5开奖号码历史查询:lending options outside of the SBA lending process, though interest rates and other terms may not be as favorable.

The Bottom Line

By increasing SBA loan limits, improving access to federal contracts, and prioritizing equity in funding, the Whitehouse initiatives further empower small businesses as vital drivers of the U.S. economy. These efforts aim to ensure that entrepreneurs from all communities can access the tools and resources needed to succeed.